Real Estate Test 2 Chapter 6 Set One

Front 1

What is the most difficult and critical task when it comes to determining the value of a property.

Back 1

evaluate the market for the property in order to estimate its future cash flows.

Front 2

• The ----------------------- between one urban activity and others is referred to as the activity’s linkages.

Back 2

demand for access

Front 3

the attractions or important access needs that one land use has for other land uses.

Back 3

linkages

Front 4

• The “gravity” that draws economic activity into forming cities is the need for ----------------------------------.

Back 4

access

Front 5

• Demand for access causes ---------------.

Back 5

urban clustering

Front 6

• Competition for access creates -------------------------.

Back 6

patterns of urban land uses

Front 7

the set of economic activities that a city provides for the world beyond its boundaries.

Back 7

economic base

Front 8

• The theory underlying the concept of economic base is that cities exist to serve the ---------------

Back 8

economic world as large.

Front 9

Multiplier effect is greater as city is

Back 9

• More isolated
• More diversified
• Larger
• The base activity uses more local goods and services

Front 10

1. “Exports” brings dollars into the community
2. Most is represent on local goods and services
3. Some “leaks” through outside expenditures
4. Some “leaks” into savings
5. Total community income is the sum of export dollars plus re-spent dollars

Back 10

steps on the base multiplier

Front 11

• The size of an economic base multiplier depends on the amount of “----------” from the local economy.

Back 11

leakage

Front 12

local economic activity is sometimes called

Back 12

secondary economic activity

Front 13

Activities in a city that serve the local business and households are re-circulating the income derived through base activities.

Back 13

• Local economic activities

Front 14

The ratio between the % of employees in a certain type of work of job classification in a community and the % of employees in that same type of work of job classification nationally. If the ratio exceeds 1 it indicates the activity is a base economic activity.

Back 14

location quotient

Front 15

excess location quotient is presumed to be

Back 15

export employment

Front 16

Efficiencies of production due to scale of local industry

Back 16

industry economies of scale

Front 17

The emergence of specialized resources in response to demands from multiple industries.

Back 17

Agglomeration economies:

Front 18

• Central force for creating cities is the demand for -------- .

Back 18

proximity

Front 19

• Cost efficiencies that arise in a city due to concentration of an industry are called ---------------, whereas cost efficiencies arising from the concentration of multiple industries are called ----------------

Back 19

industry economy of scale, agglomeration economies.

Front 20

model of how land users bid for location that reveals the influence on how density of land use is determined, how competing urban land uses sort out their locations, how urban land value is determined, and why land uses change over time.

Back 20

• Bid-rent model:

Front 21

Number of bidders (commuters or firms)
Wage rate (time cost) of commuters
Speed of travel
Frequency of trips

Back 21

factors that affect a bid-rent curve